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Friday, November 9, 2012

While precious metals such
as gold and silver make an excellent choice as a hedge against inflation or the
devaluation of the dollar, they can be extremely hard to spend. Quite often
bartering will become the alternative to cash which may have little or no
value. There is where the law of supply and demand comes into effect.

There may be a significant
supply of cash for which there is no demand because it no longer has value. In
a situation such as this, cash money will have little or no value for the
purchase of goods which you may be need. Gold or silver may not be the best
barter item simply because of its greater value which will far exceed the worth
of most items that may be required.

A gold coin that is worth in
excess of a thousand dollars will be hard to break down into a smaller quantity
for bartering. Unless you intend to significantly pay in excess of an item’s
value, you will need something with a smaller denomination that is easily
traded and that has significant and easily recognized value. Enter 22LR ammunition
as a possible solution to this problem.

One of the most popular
calibers of ammunition is 22LR. Even people who are not big fans of firearms
will quite often own a 22LR pistol or rifle. This means that the possible
demand for 22LR ammunition may well exceed the supply. Now 22LR ammunition can
function well in a barter environment of this type. It’s well suited to trade
for items with less value but can also work for items with greater value. It’s
small in comparison with other calibers and is probably the least expensive
ammunition you can purchase but will have a greater and immediate value in a
barter situation if the dollar collapses.

It’s going to be a lot
easier to trade four or five rounds of 22LR ammunition for a bag of flour than
a piece of gold or silver.